CUNA supported Rep. Mark Pocan’s (D-Wis.) resolution (H. Res. 602) commending the cooperative business model and those who use it to contribute to their communities. Pocan, who is a co-chair of the bipartisan Congressional Cooperative Business Caucus, introduced the resolution Friday.
The resolution mentions cooperatives in the financial sector, including “cooperatives including credit unions, farm credit banks, and financing organizations that lend to cooperatives ensure that all revenue is funneled back into the business to lower interest rates and provide other benefits to its member-owners.”
CUNA’s letter thanks Pocan for his efforts to recognize the importance of cooperatives such as credit unions and the positive impact they have.
“As you know, credit unions are not-for-profit financial cooperatives. We exist to serve our members, not to make a profit. Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees,” wrote CUNA President/CEO Jim Nussle. “Credit unions are member-owned, democratically operated, and generally managed by volunteer boards of directors. They have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means.”